Stock-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2017

Fair Value of Options

The variables used in these calculations of the fair value of the options are as follows:

	For the six months ended June 30,
	2017	2016
Risk free interest rate (5 year Treasury)	1.78% - 1.93%	1.49%
Expected dividend yield	0%	0%
Expected term (years)	5	5
Expected volatility	17.2% - 21.7%	40.1%

Summary of Stock Option Activity

Stock option activity for the six months ended June 30, 2017 is summarized below:

	Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (in years)		Aggregate Intrinsic Value (1)
Options outstanding, January 1, 2017		218,300		$	6.35		5.9
Granted		13,000			8.54
Forfeited		(1,195	)		8.43
Exercised		(24,061	)		5.69
Expired		(9,625	)		13.96
Options outstanding and exercisable, June 30, 2017		196,419		$	6.20		5.9	$	629,496

(1) The aggregate intrinsic value of a stock option in the table above represents the total pre-tax intrinsic value (the amount by which the current market value of the underlying stock exceeds the exercise price of the option) that would have been received by the option holders had all option holders exercised their options on June 30, 2017. This amount changes based on changes in the market value of the Company’s common stock.